Correlation Between Mastercard and Lionsgate Studios
Can any of the company-specific risk be diversified away by investing in both Mastercard and Lionsgate Studios at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mastercard and Lionsgate Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and Lionsgate Studios Corp, you can compare the effects of market volatilities on Mastercard and Lionsgate Studios and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mastercard with a short position of Lionsgate Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and Lionsgate Studios.
Diversification Opportunities for Mastercard and Lionsgate Studios
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mastercard and Lionsgate is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and Lionsgate Studios Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionsgate Studios Corp and Mastercard is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mastercard are associated (or correlated) with Lionsgate Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionsgate Studios Corp has no effect on the direction of Mastercard i.e., Mastercard and Lionsgate Studios go up and down completely randomly.
Pair Corralation between Mastercard and Lionsgate Studios
Allowing for the 90-day total investment horizon Mastercard is expected to generate 0.34 times more return on investment than Lionsgate Studios. However, Mastercard is 2.97 times less risky than Lionsgate Studios. It trades about 0.06 of its potential returns per unit of risk. Lionsgate Studios Corp is currently generating about -0.06 per unit of risk. If you would invest 47,277 in Mastercard on August 27, 2024 and sell it today you would earn a total of 4,809 from holding Mastercard or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastercard vs. Lionsgate Studios Corp
Performance |
| Timeline |
| Mastercard |
| Lionsgate Studios Corp |
Mastercard and Lionsgate Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and Lionsgate Studios
The main advantage of trading using opposite Mastercard and Lionsgate Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, Lionsgate Studios can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lionsgate Studios will offset losses from the drop in Lionsgate Studios' long position.| Mastercard vs. American Express | Mastercard vs. Morningstar Unconstrained Allocation | Mastercard vs. Sitka Gold Corp | Mastercard vs. MSCI ACWI exAUCONSUMER |
| Lionsgate Studios vs. Weyco Group | Lionsgate Studios vs. Inter Parfums | Lionsgate Studios vs. Vera Bradley | Lionsgate Studios vs. Eastern Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |